Contract Note

A contract note is a legally binding document issued by a registered stockbroker to a client after the execution of a trade, confirming the details of the transaction including the name of the security, quantity traded, trade price, trade time, exchange, brokerage charged, taxes (STT, GST, stamp duty, SEBI charges), and net settlement amount payable or receivable by the client. SEBI mandates that all registered stockbrokers in India issue contract notes within 24 hours of the trade execution — typically sent electronically to the client's registered email address. The contract note serves as the official record of the transaction and is the primary document used for tax computation — particularly for calculating capital gains, which requires the purchase cost, sale proceeds, and date of acquisition and sale. In the event of any dispute between a client and their broker regarding trade execution, the contract note is the authoritative reference document. Clients should verify every contract note received against their intended trades.